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Ohio: New Industry Severance Tax?

By Greg Russell

The Columbus Dispatch is reporting that the Kasich Administration may be contemplating new taxes on the energy industry in Ohio to fund tax breaks for others:  "Sources tell The Dispatch that the Kasich administration, in its negotiations with oil and gas producers to revise the state’s severance tax to include natural-gas liquids, has discussed using the cash to implement an across-the-board income-tax cut."

Reminds of the Golden Goose fable.  The President of Ohio's Oil and Gas Association had a good reply:  "'There’s an old adage in life: If you want less of something, then you tax it,' said Jerry James, president of the Oil and Gas Association and president of Artex Oil Co. in Marietta."

[Update:  For more, see here - "Oil and natural-gas drillers in Ohio (STOOH1) would pay a severance tax as high as 4 percent to fund income- tax cuts under a plan Governor John Kasich will unveil next week, according to an administration proposal obtained by Bloomberg News."(Bloomberg).]

Tags: Ohio, Energy, Utica

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